When does earnest money remain in the trust account until?

Earnest money remains in the trust account until disbursement is properly authorized, which means that it can only be released upon agreement between the parties involved or as dictated by the terms of the purchase agreement. This typically includes scenarios such as the successful completion of the transaction at closing or a mutual agreement to return the earnest money if the deal falls through.

In real estate transactions, earnest money serves as a sign of the buyer's serious intent to purchase the property, and it is important for this money to remain securely held until all contractual obligations have been met or appropriate decisions made regarding its disbursement. If transactions are not properly authorized, premature release of earnest money could lead to disputes or legal complications.

Understanding the process surrounding earnest money helps in strengthening the integrity of real estate transactions and ensures that both buyer and seller are protected until an agreement is reached.